ANNUAL REPORT 2010

Adding innovation to assets is what sets PREIT apart. For five decades, PREIT has demonstrated the ability to recognize and seize opportunities for adding value to properties and communities. At its core are shopping malls and power centers that continue to attract new tenants and draw consumers. Newly renovated assets are contributing to improved portfolio performance. Amid a tough economic climate, PREIT has achieved meaningful progress on both the operational and financial sides of the business. Now, it is laying the groundwork for the decades ahead by enhancing the shopping experience and bringing new uses to properties. PREIT is creating more excitement and more reasons for people to come through its doors. There's much more in store as PREIT innovates to drive more revenue for tenants, provide more value to communities, and deliver more returns to shareholders.

VOORHEES TOWN HALL,

Voorhees Town Center, Voorhees, NJ

Voorhees Town Center is an award winning, smart growth, mixed-use development intended to become the downtown of Voorhees. In the spring of 2011, the Voorhees Town Hall opened at the mall. The 24,300 square feet of space was designed to include the Township Court, Zoning, Tax Collection, Construction Permit, and Records Offices. The mayor of Voorhees, Michael R. Mignogna, has called Voorhees Town Center "the heartbeat of our community."

MURAL ARTS COMMUNITY DAY,

The Gallery at Market East, Philadelphia, PA

The Gallery at Market East is just one example of how PREIT properties become involved in local communities. Vacant space on the third floor was offered to two Philadelphia creative organizations, allowing the public to peek behind the scenes. There, the Mural Arts Program is creating one of the largest murals in the world – How Philly Moves – for the Philadelphia International Airport Gateway Project. Dance/UP used The Gallery as a temporary studio for its Dance in Public Places program, which featured 24 dance companies throughout February 2011.

BLACK ROSE ANTIQUES AND COLLECTIBLES,

South Mall, Allentown, PA

The Black Rose concept is winning customers and awards. The South Mall store in Allentown won a 2010 Gold Maxi Award – a top honor from the International Council of Shopping Centers – for its non-traditional approach to generating revenue. The PREIT Specialty Leasing Department took advantage of the popularity of antiques in the Allentown area and transformed the space into an antiques and collectibles store with 150 vendor stalls. This 49,000 square-foot space reinvigorated the mall after the previous tenant closed its doors. This solution effectively enhanced the property value and filled a key vacancy at center court, returning occupancy to 90%.

NEW RIVER COMMUNITY COLLEGE,

New River Valley Mall, Christiansburg, VA

After relocating the movie theater to a larger format outparcel near the corner of our property, we used the previous space as a stage for a different kind of audience, one focused on learning. New River Community College opened at New River Valley Mall in the summer of 2007, and enrollment has since risen to approximately 1,500 students. This alternative use has attracted new tenants to the food court, and more shoppers to the mall. It's another way the mall has become part of the community.